Saudi Tadawul Group Holding Company · TADAWUL:1111
Saudi Tadawul — FY2022 Earnings Presentation
39 slides from Saudi Tadawul's earnings presentation, Feb 27, 2023
Slide 1: Full Year 2022 Financial Results
Full Year 2022 Financial Results February 27, 2023
Slide 2: Speakers
Speakers Eng. Khalid Alhussan Shahrukh Qureshi Lee Hodgkinson Haitham Al Shathri Group Chief Executive Officer Group Chief Financial Officer Group Chief Strategy Officer Group Investor Relations Head Saudi Tadawul Group - FY 2022 Financial Results 1
Slide 3: Key Performance Review
4 Key Performance Review
Slide 4: 2022 at a Glance
2022 2022 at Glance At Glance Second derivatives product Single Stock Futures Contracts New listings(1), the highest in Largest Stock Exchange Middle East Globally, by Market Capitalization Completed Post-Trade Technology Program SAR Billion, raised on Main Market Dual Listing & Nomu - Parallel Mark
Slide 5: Key Market Highlights
Key Market Highlights (As of Dec 2022) 9,913.2 $2,640.0 223 46 Foreign Ownership (SAR Billion) (USD Billion) (Main Market) (Nomu Market) Main Market & Nomu - Parallel Market, (SAR Billion) 3.5% 1.3% Market Capitalization Listed Entities(1) Main Market & Nomu - Parallel Market Main Nomu of Free Float
Slide 6: Key Financial Performance Indicators
Key Financial Performance Indicators (As of Dec 2022) Operating Revenues Evolution 1,071.4 $285.7 8.1% ▼ 74.7 $19.9 84.1% ▲ (SAR Million) (SAR Million) (USD Million) Y-o-Y (SAR Million) (USD Million) Y-o-Y Operating Revenues Investment Income 8.0% Y-o-Y -8.1% Y-o-Y 490.3 $130.7 26.9% ▼ 440.8 $117.6
Slide 7: Business Performance Review
Business Performance Review
Slide 8: Equity, Fixed Income & Derivatives
Equity Fixed Income & Derivatives Key Highlights Key Highlights (Main Market & Nomu - As of Dec 2022) (Main Market & Nomu - As of Dec 2022) 269 20.1% ▲ Total Listed entities Y-o-Y vs 224 Number of Listed Sukuk & Bonds (incl. REITs) (SAR million) 11,986.1 (SAR Million) 37.9 $10.1 Sukuk/Bonds Value Ca
Slide 9: Edaa Muqassa
Edaa Muqassa Key Highlights Key Highlights (As of Dec 2022) (As of Dec 2022) Depository Registry Settlement Safekeeping 10 36 978 Derivatives Clearing Members (1) Cash Market Clearing Members (1) MT30 Index Futures contracts cleared 91+ 30+ Value of Cleared Products, (SAR million) Collaterals Under
Slide 10: WAMID Key Highlights
WAMID Key Highlights (As of Dec 2022) “Unlock high-speed connectivity with Wamid’s Co-Location service” Co-Location service Client Type Co-location Capacity 12% 23% Exchange Members Non-member and Rented and 46% Financial Institutions Reserved 8% Non-market Remaining Participants Network Providers 2
Slide 11: WAMID Current Acquisition Highlights: Execution Models
WAMID Current Acquisition Highlights “Wamid will execute leveraging a variety of models” Organic Collaboration JV & M&A Venture Builder Build/recruit required White labelling solutions Partner with, acquire Create, accelerate and capabilities and and systems to upgrade another entity or business sca
Slide 12: Motivating Factors Behind DirectFN Transaction
WAMID Current Acquisition Highlights “Motivating Factors Behind DirectFN Transaction” Acquire capabilities that will accelerate 1. Capabilities WAMID’s business plan execution Leverage DirectFN global network for Saudi • The transaction set at the final stages with 2. International reach Tadawul Gro
Slide 13: Financial Performance Review
Financial Performance Review
Slide 14: Average Daily Trading Value (ADTV)
Average Daily Trading Value “ADTV” (Main Market, SAR Billion) -23.0% Y-o-Y 22.6% -2.7% -26.6% -20.7% 8.9 8.5 8.2 6.9 6.9 6.1 4.8 FY 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Saudi Tadawul Group - FY 2022 Financial Results 13
Slide 15: Approximately 38% of operating revenue was non-trading driven
Approximately 38% of operating revenue was non-trading driven vs 30% a year ago on the back of lower ADTV and higher listing and Data & Technology Services FY 22 FY 21 ADTV Revenue 62% (SAR million) Y/Y Non-ADTV Revenue Operating Revenue 1,071.4 -8.1% 1,166.1 38% Trading services 310.6 -23.7% 406.8
Slide 16: Operating revenue decreased 8% YoY due to lower trading values
Operating revenue has decreased by 8% YoY predominantly due to the decrease in trading values which contracted by 23.0%. Capital Market FY 22 FY 21 Data & technology services 38% 9% (SAR million) Y/Y Segmental 1,071.4 -8.1% 1,166.1 Revenue Post-Trade Capital Markets 406.5 -17.0% 489.8 53% Data & tec
Slide 17: EBITDA decreased 27% YoY
EBITDA decreased 27% YoY reaching SAR 490.3 million in FY 2022 compared to SAR 670.6 million in FY 2021, due to the decrease in the Group’s operating revenue against growth in the Group’s operating expenditures. Operating Expenditures excl. D&A EBITDA & EBITDA Margin (SAR Million) (SAR Million) 17.3
Slide 18: 84% increase in investment income
84% increase in investment income is attributed to the higher interest rates market levels, enhanced AUM size, and collateral margins funds invested at SAMA, the Saudi central bank Investment Portfolio Size Investment Income and Collateral Interest - Net (SAR million, As of Dec 2022) (SAR million, A
Slide 19: Net Income After Zakat at SAR 424.6m
Net Income After Zakat at SAR 424.6m with margin of 40% in FY 2022 and SAR 587.7m with margin of 50% in FY 2021 Net Profit After Zakat & Margin Return on Average Equity (SAR million, As of Dec 2022) (Annualized) 50.4% 47.8% 46.2% 42.9% 34.7% 39.6% 25.7% -27.8% Y-o-Y -22.5% Y-o-Y 587.7 20.1% 1.5% -36
Slide 20: Net Profit After Zakat Movement
Net Profit After Zakat Movement FY 2022 Vs. FY 2021 (SAR million, As of Dec 2022) Net Income ADTV Impact of Non-ADTV Recurring Manpower CMA Fees* Non- Investment Zakat Net Income After Zakat Revenue New Fees Revenue Cost Recurring and Other After Zakat FY 2021 Structure Cost Income FY 2022 Decrease
Slide 21: Strong Cash Flow Conversion Exceeding 90%
Strong Cash Flow Conversion Exceeding 90% Free Cash Flow Waterfall – FY 2022 99.1 $26.4 128.0% ▲ (SAR million) (SAR Million) (USD Million) Y-o-Y 51.6 Capital Expenditure (99.1) 65.2 490.3 (67.1) 440.8 51.6 $13.8 383.7% ▲ (SAR Million) (USD Million) Y-o-Y Change in Net Working Capital 8% 50.9% ▼ EBIT
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: Saudi Tadawul Group – A Differentiated Capital Markets Leader
Saudi Tadawul Group – A Differentiated Capital Markets Leader Group Vision Group Mission To be a world leading holding group fostering the As part of its 2030 Vision, Saudi Tadawul Group is development of a diverse Saudi capital market, and helping the Kingdom build a thriving economy with a a bridg
Slide 25: Vertically Integrated and Diversified Business Model
Vertically Integrated and Diversified Business Model Key Activities Listing • Trading venue for a range of asset classes (equities, FI, ETFs, CEFs and REITs) as well as client coverage and issuer services Trading • Enhancement of the Exchange’s offering of listed instruments from a market developmen
Slide 26: Primed For the Next Stage of our Strategic Evolution
We are Primed For the Next Stage of our Strategic Evolution Strategic Goals Growth & Diversification Integrated & Connected Capable & Agile Organisational Market Innovation & Strategic Pillars Listing & Trading Clearing Depository Performance & 7 Key Information Digitalisation Expansion Capabilities
Slide 27: Key Investment Highlights
Key Investment Highlights National Champion and Integral to Vision 2030 Differentiated Business Model - Integrated, Scalable, Diverse Undisputed Centre for Regional Capital Formation Superior Financial Performance Seasoned Leadership Team with Track Record of Delivery Massive Growth Oppo
Slide 28: KSA is a Reformed Economy with Focus on Privatizations and Listings
KSA is a Reformed Economy with Increased Focus on Privatizations and Listings Privatisation Program Incentives for Listing • Core goal of the Financial Sector Development Program is to encourage private sector listings • Identify government assets and services that can be privatised • STG is collabo
Slide 29: Sustainability / ESG
Sustainability / ESG 27% of Group's workforce are female 11% women occupying C-Level positions 40% of our employees The Group has identified the following six of the SDG targets to focus on out 17 goals in its sustainability programs are below 30 years of age Our sustainability activities have inclu
Slide 30: A History of Innovation and Execution
A History of Innovation and Execution … 2022 • Largest upgrades in Saudi capital market and launch PTTP • Began as an informal • Launch WAMID co-location service financial market • The launch of Single Stock Futures (SSF) • Introduction of QFI program • First Dual Listing in GCC • Deployment of Nasd
Slide 31: Highly Accomplished Board of Directors
… Coupled with a Highly Accomplished Board of Directors Saudi Tadawul Group - FY 2022 Financial Results 30
Slide 32: Seasoned and Visionary Management Team
Seasoned and Visionary Management Team Group Management Subsidiary CEOs Saudi Tadawul Group - FY 2022 Financial Results 31
Slide 33: P&L Snapshot
P&L Snapshot SAR million, FY 2022 FY 2021 Y-o-Y Change Operating revenue 1,071.4 1,166.1 8.1% ▼ Operating expenses 581.1 495.5 17.3% ▲ EBITDA 490.3 670.6 26.9% ▼ EBITDA margin 46% 58% Depreciation & amortization 63.2 57.0 10.8% ▲ EBIT 427.1 613.6 30.4% ▼ EBIT margin 40% 53% Investment income & other
Slide 34: Financial Position Snapshot
Financial Position Snapshot SAR million, FY 2022 FY 2021 Y-o-Y Change Cash & cash equivalents 2,118.8 86.2 2358.1% ▲ Investments 674.4 2,687.0 74.9% ▼ Other assets 4,896.8 770.1 535.8% ▲ Total assets 7,690.0 3,543.3 117.0% ▲ Total liabilities 4,510.4 450.9 900.3% ▲ Total equity 3,179.7 3,092.4 2.8%
Slide 35: Listings in Q4 2022
Listings in Q4 2022 # Issuer Name Market Size (shares) Closing Date Note 1 Edarat Communication and Information Technology Co. Nomu Market Direct Listing - Listed on 26 Dec 2022 2 Saudi Top for Trading Co. Nomu Market 880,000 8 Dec 22 Listed on 22 Dec 2022 3 Molan Steel Co. Nomu Market 532,414 22 No
Slide 36: Current IPO Pipeline
Current IPO Pipeline # Issuer Name Market Size (shares) Closing Date Note 1 Al Watania for Industries Company Main Market 288,000 22 Dec 22 Approved by CMA 2 Jamjoom Pharmaceuticals Factory Company Main Market 21,000,000 - Approved by CMA 3 Morabaha Marina Financing Co. Main Market 21,428,572 - Appr
Slide 37: Current IPO Pipeline (Cont'd)
Current IPO Pipeline (Cont’d) # Issuer Name Market Size (shares) Closing Date Note 17 Anoosh Trading Co. Nomu Market 800,000 - Approved by CMA 18 Food Gate Trading Co. Nomu Market 420,000 16 Mar 23 Approved by CMA 19 Omran Najd Industries Company Nomu Market 1,000,000 - Approved by CMA 20 Ghida Alsu
Slide 38: Disclaimer
Disclaimer All information included in this document is has been prepared solely to be used to present general information and financial results of Saudi Tadawul Group Holding Company (the “Group”). By attending the earnings call meeting or accessing this presentation, you agree to be bound by the f
Slide 39: Thank you
Thank you Saudi Tadawul Group Tel: +966 (0) 11 218 9299 Email: investorrelations@tadawulgroup.sa P.O. Box 12211-3388 Address: 6897 King Fahd Road – Al Ulaya, Riyadh Kingdom of Saudi Arabia www.tadawulgroup.sa
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